MCCG212 - Reimbursement Methodology Report
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Bryant & Stratton College *
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Course
212
Subject
History
Date
Dec 6, 2023
Type
docx
Pages
5
Uploaded by ColonelOtter2485
MCCG212 – Advanced ICD Diagnostic Coding
Week 7 Reimbursement Methodology Report – Alexus Robinson
Part 1:
MCCG212 – Reimbursement Methodology Report Template
2
Reimbursem
ent System
Outpatient
Surgery
Center
Hospital
Inpatient
Laboratory
Services
Prescription
Drug
Medicare
Ambulatory
Procedure
Codes (APCs)
via Outpatient
Prospective
Payment
System
(OPPS) -
Physician Bills
Separately.
Each APC
averages a
number of
individual
procedures
into a single
number
Prospective
Payment
System (PPS)
with MS-DRGs.
Lump-sum
payment for
entire hospital
stay. - Private
physicians bill
separately
Fee Schedule
Medicare Part
D Drug Plan or
Out-of-Pocket.
Some drugs
are covered
by Medicare
Part B
(physician
services)--
especially
things like
vaccine and
other injection
Medicare
Advantage
(Managed
Care) Part C
Monthly
Lump-Sum
Payment for
all patient
care
Lump-sum
payment for
entire hospital
stay
Monthly
Lump-Sum
Payment for
all patient
care
Monthly
Lump-Sum
Payment for
all patient
care
Medicaid
Each APC
averages a
number of
individual
procedures
into a single
number.
Acute hospital
inpatient
reimbursemen
t rate
parameters
have been
rebased
according to
12VAC30-70-
391. For Type
Two hospitals,
the new base
rates should
result in total
expenditures
that reimburse
on average
78% of acute
and
rehabilitation
operating
The Deficit
Reduction Act
of 1984
requires
Medicare to
establish fee
schedules for
clinical
laboratory
procedures,
including
specimen
handling and
collection.
Federal
regulations
(42 CFR
447.342) limit
Medicaid
reimbursemen
t to no more
Medicare
Part D based
on formulary
and non
rates or by
the states
payment
system.
MCCG212 – Reimbursement Methodology Report Template
3
Part 2:
Each reimbursement system is different but some do have similarities.
Medicare and Medicare Advantage both follow the same processes all the
way across the board. One key difference is that you have some systems
that differentiate between states payment system and you have commercial
insurance base reimbursement off of negotiated prices. With the Fee-For-
Service (FFS) model under Medicaid each service receives a specific
reimbursement in exchange for the services rendered. FFS rates are
designed to pay doctors only for the care that an individual has specifically
received.
Commercial coverage usually has a wider range of plans versus
Medicare. If I were a medical provider I would choose to work with the
commercial insurance reimbursement system, specifically PPO’s. They
usually offer a network of physicians but also give patients flexibility in not
requiring referrals to specialist. Commercial insurances usually cover a fair
amount of healthcare costs which will lower the amount that the patients are
expected to pay. One challenge I may face is collecting copayments from
patients but that is something that we can overcome by collecting the co pay
up front before the patient is seen. Another difficulty may be the rates set by
certain companies. For example some companies may have lower
reimbursements that I wouldn’t find acceptable.
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MCCG212 – Reimbursement Methodology Report Template
4
References
MCCG212 – Reimbursement Methodology Report Template
5
Health Care Reimbursement. (2022, August 8).
John Hopkins Sheridan Libraries
.
https://guides.library.jhu.edu/heath-care-
reimbursement/find-amounts
(n.d.). Medicaid.gov: the official U.S. government site for Medicare | Medicaid.
https://www.medicaid.gov/